Financial Fix Is Not To Move Away From Capitalism

To The Editor:

Ms. Duvall's letter ("Trying To Understand The Financial Crisis") in the last issue of The Fulton County News was thoughtful and well written. She had me worried for a bit when she referenced Bill Moyers (a well-known liberal) but, taken as a whole, her piece was rational.

In order to fix a problem one must identify the cause(s). It's an over-simplification and not accurate to blame our current financial crisis on greedy bankers, corporate CEOs and Wall Street executives. Yes, there are clearly some cases of greed and worse, however, it was our government that planted the seeds that got us to where we are today. The 1977 Community Reinvestment Act (President Carter) compelled banks to make loans to low-income borrowers that they might not otherwise have made based on purely economic criteria. President Clinton's administration aggressively pushed CRA policies. The Bush administration made several attempts to warn Congress of the potential for a crisis, but reforms were blocked by Democrats. The bubble burst when housing values decreased and millions of people found themselves in an upside-down mortgage. The bottom line is that our government encouraged irresponsible behavior under a cynical motivation to expand a particular voting block.

Ms. Duvall's core message is that our country, based on traditional principles of democracy, is in serious trouble. I completely agree. The fix however is not to move away from capitalism and the free market system. Our country's greatness was built on capitalism, where winners and losers were chosen by market forces, not politicians.

Prior to the election, some of us were ridiculed for pointing out that Obama is a socialist. Less than a month in office can there be any doubt? You Obama voters, how do you like the change so far?